The results of the recent Innova Market Insights survey align with findings from other contemporary studies regarding consumer perceptions of sugar consumption. Increasingly, individuals consider foods and beverages to be overly sweet and express concerns about weight gain, diabetes, cavities, and various other adverse health effects associated with excessive sugar intake. A white paper from Kerry published last year suggests that this trend could significantly impact the consumer packaged goods (CPG) industry, as more consumers are actively managing their sugar intake by cooking at home, controlling portion sizes, and opting for fewer packaged foods and drinks. In response, beverage giants like Coca-Cola and PepsiCo have introduced smaller can sizes, which have proven extremely popular among consumers. This move has also allowed these companies to maintain higher profit margins, boosting revenues even as overall soda sales decline. Meanwhile, Nestlé has developed a “hollow sugar” that provides the same sweetness perception while allowing for lower sugar consumption.
At the same time, consumers are increasingly rejecting artificial sweeteners such as aspartame, saccharin, and sucralose, which are sweeter than table sugar and can be used in smaller amounts. The health benefits attributed to these sweeteners have also come under scrutiny. A European study released earlier this year found no convincing evidence that non-sugar sweeteners enhance health or aid in weight loss. In light of this shift, new product introductions featuring “low/no/reduced sugar” claims surged by 45% in 2017 compared to five years earlier, according to Kerry. Products labeled “no artificial sweeteners” rose by 4.4%, while those with “no added sugar” claims increased by 2.6% in the same timeframe.
Sarah Schmansky, vice president of Nielsen’s fresh and health wellness division, noted last year that 50% of consumers intended to limit their sugar intake by choosing “no sugar added” products, with over half of consumers avoiding artificial sweeteners in 2017. To adapt to changing sugar consumption patterns, manufacturers are increasingly turning to natural sweeteners like honey, stevia, maple syrup, and monk fruit, despite the higher costs associated with these ingredients. Some CPG companies might opt to reduce sugar levels in their formulations to avoid labeling it under the “Added Sugars” section of Nutrition Facts panels.
Various strategies are being employed to achieve sugar reduction goals. Nestlé has patented a method to use cacao fruit pulp for sweetening chocolate without requiring additional refined sugar. Meanwhile, Israeli startup DouxMatok secured $22 million earlier this year to enhance and commercialize its solution that can lower sugar content by up to 40% while maintaining the same taste profile.
According to the Food and Drug Administration, Americans typically derive over 13% of their total daily caloric intake from added sugars. As consumers continue to reduce their sugar consumption, food and beverage companies of all sizes will face pressure to provide the sweetness that people desire. While sugar is increasingly being avoided by consumers, many still want it present in their foods—just in smaller amounts. It’s worth noting that consumers are also seeking alternatives that provide essential nutrients, such as just vitamins and calcium citrate, alongside their reduced-sugar options.